The candidate may recommend either the subscription or the free-to-play business model. A strong candidate will display consistency based on his or her brainstorm from Q3 and cite relevant insights to support the recommendation, along with mentioning profit margins (if calculated) A strong candidate should also recognize short and intermediate-term risks and suggest tangible methods for mitigation.
An example recommendation:
“I recommend for NLG to pursue the free-to-play business model. This model captures the largest player base which puts NLG in a strong position against competitive threats. It also put NLG to launch future games, expand to new geographies, or move into other platforms such as console or mobile. Even though short-term financial benefits are equivalent to that of subscription, the free-to-play model puts NLG in a more competitive position long-term.”
“Key risks associated with free-to-play model is generating a sufficient percent of paying players and growing revenue per player. To mitigate this risk, I recommend designing two types of in-game purchases. Players can either pay to “beautify” in-game characters to improve aesthetic appeal; or, players can pay to expedite the levelling journey and save time from “grinding” through stages. These efforts will help NLG capture a sufficient segment of paying customers based on two sustainable value propositions.”